CaaStle board confirms financial distress, furloughing employees

CaaStle, a startup that launched in 2011 as a plus-sized clothing subscription service and later became an inventory monetization platform for clothing retailers, is facing financial difficulties, the company confirmed to TechCrunch following a report by Axios. Citing a letter from the board, Axios reported that the company is almost out of money, CEO Christine Hunsicker resigned from her CEO role and the board, and the company has involved law enforcement to investigate alleged financial misconduct. The company also confirmed to TechCrunch that it furloughed all of its employees. “The Board is deeply disappointed by the conduct that has led to this moment. Our immediate focus is on addressing the company’s challenges, supporting our employees, and preserving the value of our technology and business operations. We regret having to temporarily furlough our employees, but we believe this will best position the company to successfully recover from our current situation,” the company sa ... Read full article.